When you have found your dream home, the goal is to create a purchase offer that the seller will accept. This can be hard to achieve when you don’t know a seller’s motivation or if you’re in a competitive market with multiple buyers. Here are some tips to help you negotiate.
1. Time is of the essence, so respond to a seller’s counter immediately. If you hesitate, another stronger offer may come in and nullify the seller’s counter to you.
2. Evaluate the comps that you have been given and reasonably increase your offering price to make it more attractive to the seller. Stay within the limits of your budget and loan preapproval.
3. If your original earnest money deposit is 1-2% of the sales price, consider raising it to 3-4% so the seller sees that you are serious.
4. Having as few contingencies as possible in your offer assures the seller that there are fewer ways you can withdraw from the sale. Market conditions and the level of risk that you want to take on will determine what contingencies you feel secure about waiving. Loan, home inspection and pest inspection contingencies have the most importance.
5. Keep any requested seller concessions to a minimum because they lower the seller’s net proceeds. Concessions can be closing cost credits or seller paid home warranty plans.
With our experience, we can assist in negotiating terms that a seller may accept. But when negotiations are no longer to your benefit, we will also let you know and advise you to move on. Your best interests are our first priority.